Idea in Brief

The Context

The idea that competitors should sometimes cooperate with one another has continued to gain traction since it was initially explored in the 1990s.

The Issue

Even so, executives who aren’t comfortable with “co-opetition” bypass promising opportunities.

A Framework for Action

Start by analyzing what each party will do if it doesn’t cooperate and how that decision will affect industry dynamics. Sometimes cooperation is a clear win. Even if it isn’t, it may still be preferable to not cooperating. But it’s critical to try to figure out how to cooperate without losing your current advantages.

The moon landing just over 50 years ago is remembered as the culmination of a fierce competition between the United States and the USSR. But in fact, space exploration almost started with cooperation. President Kennedy proposed a joint mission to the moon when he met with Khrushchev in 1961 and again when he addressed the United Nations in 1963. It never came to pass, but in 1975 the Cold War rivals began working together on Apollo-Soyuz, and by 1998 the jointly managed International Space Station had ushered in an era of collaboration. Today a number of countries are trying to achieve a presence on the moon, and again there are calls for them to team up. Even the hypercompetitive Jeff Bezos and Elon Musk once met to discuss combining their Blue Origin and SpaceX ventures.

A version of this article appeared in the January–February 2021 issue of Harvard Business Review.